EUR/JPY Price Analysis: Stagnates near 158.50/159.00 in absence of market drivers

• EUR/JPY extended its losses for two consecutive days, hitting an average daily range of 43 pips.
• Key resistance levels include the 159.00 mark and the October 24 daily high of 159.91.
• On the downside, support is found at the Tenkan-Sen level at 158.45, followed by the top of the Kumo at 157.90/80.

EUR/JPY extended its losses for two straight days on Wednesday, capped by the Tenkan-Sen level at 158.45, which, acting as support, halted the pair losses. Volatility in the asset was drained as the cross-pair hit an average daily range (ADR) of 43 pips. Therefore, the EUR/JPY could remain sideways, trading at 158.66 as the Asian session begins.

The lack of direction keeps the EUR/JPY pair range-bound, though slightly tilted to the upside. That is because price action is above the Ichimoku Cloud (Kumo). Hence, the first resistance would be the 159.00 mark, followed by the October 24 daily high at 159.91. A breach of the latter, and the pair might trade above 160.00.

On the other hand, the EUR/JPY first support would be the Tenkan-Sen at 158.45. If sellers manage to hurdle that level, the next floor would be the top of the Kumo at 157.90/80, followed by the Kijun-Sen at 157.13. A breakout of that price level and the bottom of the Kumo would be next at 155.60.

EUR/JPY Price Action – Daily chart

EUR/JPY Technical Levels